5 - Historical Operating Assumptions

Whyisebitimportant

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Unformatted text preview: T is operating profit or operating EBIT is operating profit or operating income Capital structure does not impact Operating Profit Interest expense is irrelevant That is very important because it allows for a consistent measure of profit no matter what type of transaction is analyzed Most transactions have an impact on Interest expense because of borrowing or repaying debt Why is EBIT important? Why is EBIT important? EBIT refers to is the profits that a company is making from its core businesses, without regard to its...
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This document was uploaded on 11/02/2011 for the course FINANCE 390 at Rutgers.

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